10 Common Financial Blunders

There are plenty of steps that you can take to help you become financially successful, but all your hard work will end up being for nothing if you’re undermining the financial success you’re seeking to attain. The financial steps to success are important, but understanding the actions that’ll ensure financial failure are just as important. It usually only takes a single financial blunder to wipe out much, if not most, of the financial progress you’ve made. Here are ten of these blunders that you want to avoid or resolve as soon as possible to ensure the long-term health of your finances.

7 Responses to 10 Common Financial Blunders

Setting clear, achievable financial goals is something which way too many people fail to do. At the end of the day I don’t aim to become wealthy for the sake of it, but because of the goals that the wealth will allow me to achieve. If you focus on the goals, you’ll find a way to make them happen.

Good list! With so many lists out there on how to be financially successful, it doesn’t hurt to point out what doesn’t work as well. Another one I’d add: Focus on the short-term. The road to lasting wealth for most people will take years, even decades, not days or months. Avoid “get-rich-quick” schemes, develop a sound, long-term plan, and stick to it. It does work.

There are many ways one can attempt to reduce risk, improve Performance, lower drawdowns and reduce volatility. Make sure you understand diversification and put it into practice, it’s as close as you can get to a free lunch in investing. Combine the Advantages of low costs, semi-passive indexing, Portfolio rebalancing with a long-term, empirically driven strategic overlay. Prepare for a decent retirement and/or your long-term Goals. Stick to your strategy and review it every six months. Check your risk-profile and match it accordingly, also adjust it for the current business cycle and outlook. This is your home work, every six month, but always focus on the big picture.

Great post. To me living paycheck to paycheck is really scary. I consider myself as ‘money conscious ’ and have a saving plan already in action. But, that doesn’t guarantee me never, ever falling into the trap of financial blunders…. just makes me feel somewhat good that I have a financial cushion to fall back on